Welspun India Ltd. (WIL), a global leader in Home Textiles and part of the US$ 2.7 billion Welspun Group, announced FY22 results.
Total revenue stood at ₹ 93,773 mn in FY22, up by 26.6% YoY. Textile business revenue at ₹ 87,911 mn reported sharp increase in FY22 on account of higher sales volume of Terry Towels by 1% YoY, Bed Sheets by 6% YoY and Rugs by 19% YoY.
Speaking about the performance, Mr. B.K. Goenka, Chairman, Welspun Group, said “The global economy is going through unprecedented times currently – Ukraine-Russia conflict, logistical challenges, unseen levels of increases in commodity prices and decades’ high inflation in western economies – have all come on the back of an extended pandemic and resulted in dampened business sentiments across industries worldwide. Against this backdrop, it is very heartening to see that our Home Textile revenues continued its upward trajectory to cross $1bn mark this fiscal, growing by 23% and total revenue growing by 27% to reach ₹9,377 crore. This demonstrates the ability of scaled-up, quality-led, and highly differentiated players to maintain an edge even during challenging times. The recently announced Free Trade Agreements with Australia and Middle-East countries would bring in additional advantage for the Indian Home Textiles industry and players like Welspun.
Our Emerging Businesses of E-commerce, Brands, Flooring, and Advanced Textiles have cumulatively grown by 44% during the fiscal year under review with all the businesses touching record revenues. The share of these businesses in the overall revenue has steadily increased to 26% from 23% last year. Domestic Retail top-line has grown by 66% in FY22 and the Welspun brand has become the largest distributed health textile brand in the country. Flooring continued its upward trajectory and has grown by 107% this fiscal. The investment in all of our Emerging businesses is starting to reap the desired results to drive our growth plans for the future. Historic highs in cotton and coal prices, global logistics disruptions and related impacts continue to put further pressure on the margin front. We, however, remain focused on our medium to long term strategic priorities and growth pillars by laying emphasis on our long term goal of sustainable growth, profitability, and deleveraging our balance sheet.
On the sustainability front, Welspun has set benchmarks for the industry through its differentiated efforts in all areas of Environmental, Social, and Governance (ESG) where several significant outcomes have already been achieved. In Home Textiles, we have been recognized by Tesco and awarded with their Sustainability & Community Award for exceptional focus on community initiatives and for outstanding ethical performance. I am also delighted to share that in our Flooring plant, 15% of total energy currently being used is from renewable energy and the target is to reach 25% by 2025 and 50% by 2030.”
Key Business Updates:
Flooring business revenue was up by 107.4% YoY to ₹ 6,611 mn. The company registered significant growth of 40.3% YoY in branded business in FY22
With an aim to be “Har Ghar Welspun”, the company has increased nationwide footprint of Brand Welspun’ to 6,642+ outlets and 482+ towns, reinforcing it to be the Number 1 distributed HT brand in India.
Capacity Enhancement:
The capital light expansion at Vapi and Anjar which were started last year have been completed with increase in Towel capacity by 12.5%, Bed Sheet capacity by 20.0% and Rugs capacity by 50.0%. The new capacities are ready for use from Q1FY23. Greenfield Spunlace Capacity addition project in Telangana started commercial production from March 2022. The Flooring capex project will conclude towards the end of Q2FY23. In FY22 the Company has spent ₹ 5,431 mn towards Capex.